Board selects Kane Anderson for core‑plus real‑estate allocation after presentations from three finalists

The Mendocino County Board of Retirement on Oct. 15 chose Kane Anderson as its core‑plus real‑estate manager following interviews with three finalists: Harrison Street, Bentall GreenOak (BGO) and Kane Anderson. Trustees directed staff to split the county’s real estate allocation evenly among the three active managers, pairing the new manager with existing core managers DWS and LaSalle.

The selection followed a series of presentations organized by the board’s consultant. Harrison Street emphasized its focus on alternative, demand‑driven real estate sectors such as medical office, senior housing, student housing, self‑storage and life sciences and noted an emphasis on income and inflation resilience. Bentall GreenOak presented a diversified core‑plus strategy with notable exposure to multifamily, power/logistics and specialty industrial (including cold storage and advanced manufacturing), and highlighted a plan to grow its fund with a mix of income and growth assets. Kane Anderson described a strategy concentrated on higher‑quality alternative sectors—medical office, senior housing and student housing—arguing the fund’s returns have been generated by conservative underwriting, deep operating relationships and lower observed return volatility.

Kane Anderson representatives told trustees the firm favors a long‑term, partner‑focused operating model. “We look at relationships on a very long term basis,” Kane Anderson founder and CEO Al Rabille said in closing remarks. He also emphasized the firm’s operational platform and said investors would have direct access to senior leadership.

Callan, the board’s investment consultant, summarized the tradeoffs among the finalists. Callan noted Harrison Street and Kane Anderson both provide substantial exposure to alternative sectors the board lacks across its core managers, while Bentall GreenOak offered more traditional core‑plus exposures (including a larger multifamily component and a stated emphasis on power/logistics). In its post‑presentation analysis, Callan highlighted that Kane Anderson’s portfolio has shown higher current distributable income and a lower standard deviation of returns, factors several trustees cited as important for the overall MCERA portfolio.

Following trustee deliberation, a motion to appoint Kane Anderson passed unanimously. Trustees also confirmed staff guidance that the county’s real‑estate allocation should be split evenly among the three active managers—DWS, LaSalle and Kane Anderson—subject to standard onboarding and contract negotiation.

Ending: The board’s decision adds a third active manager to the county’s real‑estate lineup. Staff will begin onboarding and contract work with Kane Anderson and adjust portfolio implementation to reflect the equalized manager split once legal and administrative steps are complete.